US Inflation just fell to 3.2% after posting a 0% month on month movement.
This is fantastic news because all the key data is showing that inflation in the US is over.
US CPI without the lagging Shelter indicator is at 1.3% and Core Inflation is at 1.9%. Shelter is on its way down – we can already see it in the data but it will take time because of the lag effect.
So what is going to happen to the US stock market when interest rates start falling next year and the economy rebounds after a 2-year suppression?
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The Stock Market Is About To Explode
After a year of uncertainty and volatility, the stock market is showing signs of significant growth and potential for explosive gains. As the world continues to recover from the effects of the COVID-19 pandemic, investors are turning their attention back to the stock market with renewed optimism.
One of the key factors driving this newfound confidence in the market is the rapid distribution of vaccines and the gradual reopening of economies around the world. With consumer spending on the rise and companies starting to see an increase in demand for their products and services, there is a growing expectation of a strong economic recovery.
In addition to the positive economic indicators, the Biden administration’s proposed $1.9 trillion stimulus package has sparked hopes of further fueling the stock market. The package includes direct payments to individuals, extended unemployment benefits, and support for small businesses, all of which are expected to boost consumer spending and drive economic growth.
Furthermore, the Federal Reserve has indicated that it will maintain its supportive monetary policy, keeping interest rates low and continuing to purchase bonds. This sustained accommodative stance from the central bank has played a crucial role in stabilizing financial markets and fostering confidence among investors.
Another contributing factor to the potential explosion of the stock market is the influx of new investors, particularly younger individuals who have turned to stock trading during the pandemic. The proliferation of commission-free trading platforms and the accessibility of investment information have empowered a new generation of retail investors to participate in the market, injecting fresh capital and energy into the stock market ecosystem.
As the market continues to climb to new heights, experts are cautioning investors to remain vigilant and wary of potential risks. The rapid pace of stock market growth has raised concerns about the possibility of a market bubble, and the resurgence of speculative trading activities, such as the recent GameStop frenzy, has drawn attention to the need for prudent investment strategies.
It is essential for investors to conduct thorough research, diversify their portfolio, and seek guidance from financial professionals to navigate the evolving market conditions. While the stock market’s potential for explosive gains is a cause for excitement, prudent decision-making and risk management will be crucial to capitalize on these opportunities and safeguard investment portfolios.
In conclusion, all indications point to an imminent explosion in the stock market as the global economy recovers, stimulus measures take effect, and new investors flock to the market. While the potential for substantial gains is high, investors should remain cautious and strategic in their approach to capitalize on this promising outlook for the stock market.
With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly—which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $125k bond/stocck portfolio.
Gay bears have predicted 11 of the last 2 recessions…
The Fed isn’t playing 4D chess, they’re playing 1D tiddlywinks.
Everyone has been preaching "buy now, stocks are at a discount" but I've been buying stocks since the beginning of the year and yet nothing's changed, but I've been reading articles of people still in the same market pulling off over 350k in just a couple months, what am i doing wrong?
What's the difference between a conspiracy and reality… about 6 months
Why does everyone think that inflation is going to come down and not go even higher? Interest rates are going to go into double digits. We are going to see even more banking troubles in early 2024 and we have already been in recession for some time now – they just haven't admitted it.
Nothing else is left in the capitalist service based western asset economies. Nothing, except, the continuos inflation of assets. Extreme sadness, the governments didn't even begin to think to declass residential real estate, as a Forbidden Asset. It's a western humanitarian disaster….
Governments in the west have given up management of the economy to the banks. This is why we are in this mess.. it started with the banks causing drops in confidence when a new government was elected.. when there is an election the market should be suspended
Wow capitalist market analysist really showing how stable this system works. .2 –> 98% swing, clap.
Personally, you speak my language. I probably don't care about whether you are right or wrong. It's like listening to a public official cussing out complete with maginative name-calling (Muppets, Smurfs, et al) that makes me a fan of this analyst.
Am too confused do I start stocks market in U.K. now or wait
The Fed is also reducing the size of its balance sheet which is another form of tightening. The Fed has hawkish stance to reduce people’s expectation of inflation which I’m sure you know that expected inflation is the pulse that kills. The other aspect is the yield curve. The fed’s hawkish rhetoric has caused long rates to rise over the last 3-4 months. This is all about corporate credit and lending rather than the mortgage market, the Fed is happy that long rates have risen because it will cut inflation. They know they can’t determine long rates and so the Fed has and keeps signalling they’re hawkish so that long rates don’t get out of control and the corporate credit market explodes. Be humble, read Plato.
Why is this video not getting monetized? 🙁 what's the problem? swear word(s)?
Those are signal handle lead the most dangerous Mafia in the world
If the illuminati gets in the way the feds will be slaughtered
The feds run everything
Fells are international Mafia finance
Rachel go up or stay the same for another 12 months
Beds run the world
How is the stock market going to explode with 60% of the population in desperate poverty? The inflation figures are all manipulated, but even if not, where is the money for another boom going to come from? The entire working class are poor now and the rich already have all the money invested. Moving deck chairs around cant result in a boom.
Reverse market crash coming
You work for 40yrs to have $1M in your
retirement, meanwhile some people are putting just $10K in a meme coin from just few months ago and now they are multimillionaires.
We could literally just get rid of all these weird reserve bankers and leave interest rates at a flat rate. All they do exasperate existing problems by making dramatic over corrections, and then market regulators are forced to step in to control inflation anyway. Its ridiculous.
The wisest thought that is in everyone's minds today is to invest in different income flows that do not depend on the government, especially with the current economic crisis around the world. This is still a good time to invest in gold, silver and digital currencies (BTC, ETH…. stock,silver and gold)
So what is driving food proce increases if it is not inflation? Greed? Increased costs of production etc? Interesting, tha k you for the video.
Just crossed the $1.5M mark in my portfolio, and I can't help but think of Taylor's lyrics, “The best people in life are free.” Investing wisely has given me such freedom. It's incredible how aligning with the right mindset and guidance can fast-track financial goals. I'm living proof that expert advice works wonders!
Mortgage rates can actually come down without the Fed doing anything; the spread between the 30 yr mortgage and 10 year t bond is at record highs IIRC. If inflation stabilizes that spread will shrink w/o the Fed doing anything. And actually if inflation comes down and stabilizes long yields will come down and bring mortgage yields with them
You just published a video not too long ago saying the market wouldnt melt. You are as consistent as a politician, liar.
There seems to be skepticism amongst investors regarding the Federal Reserve's plan to continue increasing interest rates until inflation is stabilized. I'm at a crossroads deciding if to liquidate my dipping 200k stocck portfolio, what’s the best way to take advantage of this bear market?
Best video I watched in the last month!
It's gonna be time for poor ol' me to invest in the market
Yep, that crap data is "Faked data" 🙂 Otherwise it wouldn't been so crappy! 😀
with inflation worries growing, and the Federal Reserve taking a more hawkish approach to interest rates and bond purchase tapering, a correction is underway.
All i can see for the last year or so is clickbait videos
What will this mean for precious metals?
Wee need inflation lower than 2% to recover those 8-9%, because when it was lower, they "needed" to get inflation to the 2% target and because it was lower in the past. lOL
9:54 The background is real! Always thought it was a green screen… 😛
I don't quite understand your stance or reasoning. The FED f*cked up in 2021 and caused an inflation problem. Agreed.
The FED is f*cking up again by over-tightening. Don't agree. So long as the economy is still too strong, Inflation will continue to be a problem. Powell and the Fed's decision to go so soft with the response to the Inflation issue lets the economy adjust to the rate increases (Stagflation), Which They want to resolve inflation WITHOUT harming the economy and causing a stock market crash, Because they're weak. They wanted to have their cake and eat it too. In Short, They've done MORE damage to the economy than they've done to inflation. They haven't SOLVED the inflation problem by killing consumer spending habits, Yet the higher interest rates have done damage to the economy and consumer. The Fed SHOULD HAVE done a 300 bps hike when it mattered, When the economy was still strong enough to absorb it. Now the economy is weakened but the rates aren't high enough to have solved the inflation problem**, If they pause and cut too soon, inflation will come back again, Because the dynamics for inflation are still there (EVEN IF the inflation rate has come down to or below 2%).
** UNLESS of course the consumer or the system reaches a breaking point, Which could be a BAD reason for seeing inflation slowing down, and we see a recession take hold (the inevitable destination for taming inflation). In this case, the consumer just can't afford to buy anything beyond bare necessities anymore. We enter Deflation, Interest rates are cut, But that doesn't matter because it's too late, the damage is already done, And we see Corporate revenues and profits drop, We see layoffs and a huge spike in unemployment, and We see a Stock Market Crash. Exactly like the Dot Com bubble. Exactly like 2008 financial crisis. Exactly like the 1970's and 1980's. 2024 is going to be no different. We haven't seen the stock market crash yet.
I agree the stock market will explode. It will explode and come crashing down when it's clear we're in a recession and it's clear the economy is falling apart. When the unemployment rate rises above 4.5% and doesn't stop. When interest rate cuts start to try to save a sinking ship, And the Stock Market goes down with it. Inflation will be solved, not by the fed, But by the deterioration of the economy. We're going to take out the October 2022 Lows sometime in 2024 or 2025. THAT will be the buying opportunity.
This is partial data. Powell has to keep rates to combat the fiscal spending. That is a scaling source of inflation that is out of control.
The moment he cuts rates, inflation will go back up. It does not just stay at 2% or 1%. He needs it to stay at 2%, which is impossible because of government spending.
The market will explode in the direction of money supply ONLY. This reverse stock market crash will not happen until cuts. It will be driven by options and not stocks buying (not enough money supply).
Which means 2022 all over again from a higher price (if he cuts). Hopefully he doesnt cut and markets crash downward.
What hell is AOH500X and wow bots
Is that a white GSD?